Operating Leases

12 Months Ended

Dec. 31, 2022

NOTE 20 – Operating Leases

Our operating leases primarily relate to office space and office equipment with remaining lease terms of 1 to 13 years. At December 31, 2022 and 2021, operating lease right-of-use assets were $775.9 million and $750.7 million, respectively, and lease liabilities were $819.7 million and $799.1 million, respectively, and included in accounts payable and accrued expenses in the consolidated statements of financial condition.

The table below summarizes our net lease cost for the years ended December 31, 2022 and 2021 (in thousands):


	Year Ended December 31,
	2022			2021
Operating lease cost	$	105,402		$	102,652
Short-term lease cost		1,385			505
Variable lease cost		1,558			1,076
Sublease income		(2,303	)		(2,560	)
Net lease cost	$	106,042		$	101,673

Operating lease costs are included in occupancy and equipment rental in the consolidated statements of operations.

The table below summarizes other information related to our operating leases as of and for the year ended December 31, 2022 (in thousands):


Operating lease cash flows	$	105,928
Right-of-use assets obtained in exchange for new operating lease liabilities	$	98,369
Weighted average remaining lease term	11.4 years
Weighted average discount rate		3.88	%

The weighted-average discount rate represents our company’s incremental borrowing rate at the lease inception date.

The table below presents information about operating lease liabilities as of December 31, 2022, (in thousands, except percentages):


2023	$	105,278
2024		103,697
2025		98,725
2026		99,179
2027		97,404
Thereafter		524,028
Total undiscounted lease payments		1,028,311
Imputed interest		(208,629	)
Total operating lease liabilities	$	819,682